The goal of the proposed research is to further our understanding of the determinants of changes in the size and composition of the hospital labor force, and of the growth in wage rates paid hospital employees. Models will be constructed and estimated with econometric methods to explain variations in these three aspects of hospital labor markets. With these estimates, we shall predict the effects of alternative public policies as well as the effect of factors beyond the control of various levels of government on the three labor market variables. The principal policies of interest relate to third party reimbursement and direct and indirect regulation of hospitals including prospective budgeting and wage-price controls. Explanatory variables having potential implications for other policies, for example, in the area of health manpower education, will also be included in our analysis. Explanatory variables beyond the control of government include exogenous determinants of demand for hospital services and exogenous forces on the supply side of the markets for hospital labor. The research is divided into four parts. Each uses a different data source. Analysis in one part will be conducted at the level of the Standard Metropolitan Statistical Area; a second part will use the individual hospital as the observational unit; and research in the remaining two parts will be conducted at the level of the individual hospital employee. No new data will be collected for this project, but a substantial amount of data from existing sources (some unpublished) will be assembled. Observations will extend through 1975-76.